Volkswagen has been the topic of a recent scandal for knowingly cheating vehicle emissions tests.

Volkswagen admitted to falsifying vehicle emission tests for diesel-powered engines, leaving an estimated 11 million cars under scrutiny.

Affected Volkswagen owners who have been mislead may be entitled to compensation. Click here to find out.

The instance of cheating has undoubtedly damaged the Volkswagen reputation. In the wake of the scandal, Germany launched a criminal investigation into former Volkswagen CEO Martin Winterkorn as he steps down for new leadership.

How Many Cars Are Affected?

The scandal is most prominently related to Volkswagen’s Audi brand.
Image: Blogspot

The reputation of Audi, VW’s luxury brand, was greatly impacted by the scandal. The manufacturer admits that about 2.1 million Audi vehicles are equipped with the cheating device that allowed the German car maker to falsify emission tests.

In the U.S., 13,000 vehicles contain fraudulent emissions readers, along with  577,000 in Germany. The number is even greater in Western Europe, with about 1.42 million cars possessing the cheating software.

About 11,600 of the affected models are 2010 to 2013 A3 TDIs, which were marketed as possessing the company’s first “clean diesel” engine. Ironically enough, the Audi A3 TDI was awarded the Green Car of the Year in 2010.

About 2,400 A3 TDIs manufactured in 2015 use a different method to reduce emissions but are still equipped with the cheating device.

The 3.0-liter V6 diesel engine used on the A6, Q5, and Q7 models in the U.S. is not included in the scandal.

“An internal evaluation on Friday established that a service procedure is required for some five million vehicles from the Volkswagen Passenger Cars brand out of a total eleven million Group vehicles worldwide,” the company said in a statement.

“These vehicles from certain models and model years (such as the sixth generation Volkswagen Golf, the seventh generation Volkswagen Passat or the first generation Volkswagen Tiguan) are fitted with Type EA 189 diesel engines. All vehicles are technically safe and roadworthy.”

A Recovery Plan In The Works

Former Volkswagen CEO Martin Winterkorn has stepped down to allow Porsche boss Matthias Mueller to take over.
Image: Inhabitat

On Sept. 28, German officials announced an official investigation into former CEO Martin Winterkorn.

But Winkerton’s mistakes have consequences that extend far beyond himself. Germany’s Deputy Finance Minister Jens Saphn said the scandal could be a serious detriment to the country’s economy, according to Reuters.

Volkswagen is not only Germany’s biggest car manufacturer. The company employs a large portion of the workforce, numbering at about 270,000 employees.

“Volkswagen is a core pillar of German engineering and for something like this to happen is a strong blow,” he said. “Getting this reputation thing resolved is going to be a herculean task.”

Wiknerton stepped down to allow Porsche boss Matthias Mueller to take the reins and attempt to propel the company to recovery mode.

Audi is currently working to release a recall plan to address the situation. The German Federal Motor Transport Authority has set Oct. 7 as the official deadline for a recall plan to be submitted.

The company plans “to get in front of the EPA and California Air Resources Board as soon as possible,” according to an Audi spokesman.

Impact on Volkswagen

The scandal has instilled fear in the hearts of Volkswagen investors, who question if recovery is possible.
Image: Amazon

Volkswagen is a 78-year-old conglomerate that continued to grow after purchasing Toyota at the beginning of 2015. The company has boasted the largest market share for automotive sales, but many are wondering how the scandal will play out.

“It is clearly a massive blow to the reputation of the company,” Christian Ludwig, automotive analyst at Bankhaus Lampe told CNBC.

Two weeks ago, market shares fell by 30 percent. On Sept. 28, they dropped again by 7 percent. The recent scandal is the largest in the company’s history, leaving many investors to wonder if recovery is even possible.

“My biggest fear is that the amount of money we are talking about, the 6.5 billion euros ($7.3 billion) that has provisioned for, is a smaller amount than Volkswagen will probably have to pay,” Juergen Pieper, head of automotive research at Bankhaus Metzler, told CNBC.

“My second concern is the duration of this scandal – it will probably take years before it sorts out all this and there’s the reputational damage too,” he added.

The company plans to use $7.3 billion to clean up the scandal, in addition to fines that are up to an estimated $18 billion.

According to the German media, a Volkswagen engineer warned the company about cheating emission testing in 2011. There’s no doubt that company would be in a much better position if they had taken the advice.

The post Volkswagen Under Fire For Falsifying Vehicle Emissions Tests appeared first on Citizens Report.

Hyundai is recalling almost half a million Sonatas built with metallic debris that may restrict oil flow and cause the engine to fail.

Hyundai Motor Company, an international automotive manufacturer headquartered in South Korea, is recalling about 470,000 Sonatas with stalling engines.

The issue was caused by an assembly line error at a manufacturing plant in Alabama. Debris that weren’t fully removed from the engine could potentially restrict oil flow and cause the vehicle to stall or fail.

Recall Details

Although Hyundai is Korean-owned and operated, more than half of vehicles sold are made in the U.S.
Image: News Net

The recalled vehicles include the 2011-2012 Sonata model that were manufactured between Dec. 11, 2009, and Apr. 12, 2012. Hyundai’s recall number is 132.

The defective models are equipped with 2.0 or 2.4-liter direct injection gas engines. The engines contain metal debris that were meant to be removed.

“If the debris was not completely removed, oil flow may be restricted through the connecting rod bearings, causing connecting rod damage and possible engine failure. A worn connecting rod bearing will produce a metallic, cyclic knocking noise from the engine and possible engine failure,” according to the report.

There have been no reported injuries thus far, according to the National Highway Traffic Safety Administration. The administration estimates that only 2 percent of the 2011-2012 models are equipped with engines that have the potential to stall.

Read the letter from the NHTSA to Hyundai here.

Recall Solution

The engine problem stemmed from a Hyundai manufacturing facility in Montgomery, Alabama.
Image: HMMA USA

Hyundai will notify drivers who need to have their vehicles inspected. The group will replace defective engines if necessary. The fix will be free of charge.

“Additionally, Hyundai Motor America will increase the warranty for the engine sub-assembly (short block) to 10 years/120,000 miles for both original and subsequent owners of 2011 and 2012 Sonatas manufactured at Hyundai Motor Manufacturing Alabama equipped with 2.0 and 2.4-liter Gasoline Direct injection engines,” the report said.

Please contact your Hyundai dealer or Hyundai Customer Care Center at 855-671-3059 for more information.

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